VAT registration & Taxable Supplies

[caspian]

Does anyone out there know if the "non vatable" commissions from CJ count towards the £58K VAT threshold or does the fact that they're exempt mean they should be disregarded when adding up commissions?

[dbm44]

I asked the VAT office that exact question last year before I registered and was told that because CJ commissions were outside the scope of VAT, they did not count towards the turnover threshold.

However if I was you, I would phone them directly and ask them again just to be sure. You should find them quite helpfull

[caspian]

thanks dbm - was planning on calling them just wanted a steer on what they might say - encouraging tho' if i get the same result as you

[Shane]

aye I saw an accountant yesterday and he said it did count...

but I am not sure I believe his depth of knowledge.

I know that appearances aren't everything but the guy was wearing a £1.99 casio plastic watch, a shirt from netto that must have been like £1.00 and his office turned out to be his house.

I know the booted n suited rolex wearing ones are probably embezzling but jeezuz . .. a Poor accountant ..what's that about ?? lol

having said that his palid grey complexion made me feel positively healthy so wasn't a total waste of a trip.

[caspian]

yeah seems a little subjective this one - reckon all i can do is be up front about it and see what happens - out of interest did you get his view on where he reckoned cj are domiciled?

[Shane]

nah I didnt, I just said it was a US company with a UK office.

Kinda decided there and then he wasn't the guy for my accounts lol, kept shutting his eyes to think the answers to numpty questions like..

"so if we contract hire a 911 each do the tax gimps view that any worse than us getting say a £20k car each on contract hire, does the value of the car make any difference, is it bracketed etc " ( I have no clue about tax lol.. )

waiting for him to access it in his head was like watching paint dry...

[harris1]

CJ`s Claim to be "Outside the scope of VAT" is tenious to say the least. Some people are being made to pay Vat on CJ commisions already due to regional interpretation of the rules by HMCE officers.

Further doubt has been cast on this issue by them opening a UK office, paying commision in £ as well as dollars and payments originating from the UK.

This and the fact that HMCE claim the final receipitant of the traffic (ie if the merchant is based in the UK) is a factor in whether vat should be paid.

There are rumours that CJ has had to ask some Merchants for Vat for some of the reasons I have mentioned. Their is a pretty long thread in the CJ forum on this. Its not as clear cut as you think, dont be suprised if you end up having to pay the Vat on CJ commisions in the not to distant future.